👨🏫Today looks to be a great example of the classic 2-pronged U sector trading pattern whereby investors are now buying up #Uranium #mining #stocks & ETFs to build their U portfolio📂⚛️⛏️🛒🐒 before they drive up #SPUT which is seeing very low volume so far.🤠🐂
John Quakes @quakes99🧑🏫Given the way the Sprott Physical #Uranium Trust's cash raising & Spot market buying influences the Spot price for #U3O8⤴️🛒 which in turn affects the asset values of U #stocks 🎡⤴️ there is a unique trading pattern that U should be aware of that's a 2-pronged approach by traders & institutional investors to exploit this dynamic in order to add more upside torque:🚀 Step 1 - they load up on shares of uranium producers, developers and explorers to the desired weights in their portfolio📂⛏️🏭🧑🏭🛒 Step 2 - they then pile into #SPUT to drive its share price higher, eliminate the discount to NAV and turn on SPUT's ATM🏧💵 so it can begin raising more cash to buy more drums of U3O8🛢️☢️🛒 📈The Spot price then rises as SPUT purchases more Spot U3O8, which then triggers a rally in the share prices of the producers, developers and explorers they already hold in their portfolio, driving up the value of their U stocks portfolio.⬆️💰⚛️⛏️📂😊 The resulting U sector rally also usually drives up the share price for SPUT, especially from forced buying by U sector ETFs and their APs, which drives SPUT's shares to an even higher Premium, turning on the ATM to raise more cash for buying more Spot lbs, putting even more upward pressure on the Spot price, and so on...🎡⤴️ That's a trading pattern we've witnessed many times over the past 5 years, and one reason why U often see U stocks rally strongly while SPUT lags behind.🐌 As well, some investors use SPUT as a lower risk place to hold their cash, then sell their SPUT shares when the U sector rallies so they can use the cash to purchase higher risk companies with more torque to the Spot price. That also tends to hold SPUT back until that rotation is over.... so U know!😉 Good luck with your trades!☘️🤠🐂
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